Binance vs SEC: Robinhood delists cryptos

Amid increased cryptocurrency regulation in the United States, popular trading platform Robinhood has announced that it will delist three prominent cryptocurrencies. It is Cardano (ADA), Polygon (MATIC) and Solana (SOL). This decision is expected to take effect on June 27, 2023, following the classification of these digital assets as “securities” by the US Securities and Exchange Commission (SEC).

Impact of the SEC decision on Robinhood

Robinhood, a renowned trading app, has announced the discontinuation of support for ADA, MATIC and SOL following their recent classification as “securities” by the SEC.

This initiative affects a small but significant portion of the digital assets available on Robinhood. Additionally, it highlights the growing regulatory pressure on the cryptocurrency industry in the United States. The US Congress is seeking to moderate the action of the SEC, but so far no checks seem to be effective.

In his announcementRobinhood reassured its users that “ No other coins are affected and your crypto is always safe on Robinhood”. Despite the withdrawal of ADA, MATIC and SOL, approximately fifteen digital assets remain available for trading on the Robinhood platform.

SEC steps up pressure on crypto industry

Robinhood’s announcement comes in a complex environment. Indeed, we are witnessing an escalation of tensions between regulatory authorities and cryptocurrency exchanges. Recently, the SEC filed a lawsuit against Binance and Coinbase.

Faced with these pressures, BinanceUS had to stop accepting deposits in US dollars. This constraint marks the start of its transformation into a cryptocurrency-only exchange.

The SEC criticizes Coinbase for a significant failure. Indeed, it accuses the company of failing to comply with the registration requirement for the offer and sale of its crypto asset storage program.

These recent events underscore the rapidly changing and uncertain regulatory landscape surrounding cryptocurrencies. Major players such as Robinhood, Binance and Coinbase find themselves at the forefront of these regulatory changes. Therefore, these changes could have far-reaching implications for the future of cryptocurrencies.

Faced with mounting regulatory pressure, the crypto industry is at a crucial crossroads. Indeed, decisions made today could determine the trajectory of this revolutionary technology in the years to come. However, the outcome does not rest solely on regulatory decisions, crypto resistance could also significantly influence the situation.